KUALA LUMPUR (July 21): In an on-going tussle over the RM8.3 billion Federal Land Development Authority (Felda) settlers’ debt write-off, Datuk Seri Anwar Ibrahim has now threatened to sue Tan Sri Muhyiddin Yassin if the Perikatan Nasional (PN) chairman does not apologise for his comments within the next 24 hours.

In a letter issued through the legal firm of SN Nair & Partners on Friday (July 21), the prime minister said he had already responded to Muhyiddin's letter of demand (LOD) issued earlier this week, adding that by making continued comments to the contrary, the PN leader was acting in bad faith.

The letter, seen by The Edge, stated that Anwar had already responded to the allegations within the stipulated time through a Facebook posting dated July 20 with indisputable proof.

It added that in law, the method of Anwar's response — through a Facebook posting or through his lawyers or both — was irrelevant and that Muhyiddin was acting in bad faith by claiming that the PKR chief had not responded to the allegations.

The PM's lawyers added that Anwar's statements were taken out of context and that the PM’s statement was also corroborated by Felda chairman Datuk Seri Ahmad Shabery Cheek in a statement on July 8.

Besides the public apology, Anwar also wants a retraction of the LOD and any defamatory statement pertaining to the issue. He is also seeking damages of RM200 million.

In a statement on Facebook on Thursday night, Muhyiddin said he will commence legal action against Anwar because the PM did not provide an open and unconditional apology to him.

Muhyiddin sent the LOD through his lawyers at Rosli Dahlan Saravana Partnership on July 18 over Anwar's statements alleging that the PN leader's administration had never implemented his promise to write off RM8.3 billion in loans granted to Felda settlers.

Following the LOD, Anwar had shared documents with the public and the media showing that he had executed agreements to waive the Felda settlers' debts.

But Muhyiddin countered that these documents concerned a sukuk bond and not the Felda settlers' debts, and insisted that Anwar was not telling the truth.  

Previously, Anwar claimed that zero allocations were made to resolve and dispose of Felda’s debts under the PN government’s 2021 and 2022's budgets.

In late June, he signed an agreement involving a government guarantee for Felda to restructure the agency's loans through the issuance of sukuk and revolving credit, in an effort to restore the agency's finances and enable it to continue to waive some RM8.3 billion worth of settlers' loans.

According to the Finance Ministry which Anwar also helms, a large part of this Felda loan restructuring will involve a reduction of Felda's debt principal with financial institutions by RM7.9 billion.

The move will also reduce Felda's financial cost against interest rates imposed and enable Felda to cancel 80% of the settlers' debts amounting to RM8.3 billion that was implemented in 2021, it said.

This means that the waiver of the settlers' debts — which Putrajaya announced in February had been halted due to Felda's cash flow problems — would continue.

At the time, Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Azalina Othman informed Parliament via a written reply that the government would not be able to carry on writing off Felda settlers' loans any longer as it had made a huge impact on Felda's cash flow.

The waiver of the Felda settlers' loans was first announced in July 2021 by Muhyiddin.

Also read:
Muhyiddin to sue Anwar on failure to apologise over Felda debt claim
Muhyiddin threatens to sue Anwar, demands apology over Felda debt issue